The difference is that the Bank has really tight regulatory requirements on how much collateral they need to have for each dollar in a savings account. There ar

The difference is that the Bank has really tight regulatory requirements on how much collateral they need to have for each dollar in a savings account. There are much more regulatory requirements on banks that limit how effectively they can invest your savings account money. This all to ensure that the bank does not accidentally lose your money / cause a bank run. Bank accounts count as a security. But they are regulated more tightly by bank-account rules, so they are exempt from the less stringent Security rules. Meanwhile Coinbase is much free-er to do with your money as they like. If they play it too risky and go bankrupt, that is your money gone. To offset this risk, securities law requires they register as a security and make the required disclosures and limit speculative statements etc. So "banks can't compete on interest" is maybe true, but not a fair comparison since banks also have to be much more careful with your money.